I'm interested in moving some of my savings to either a managed fund or ETFs. Around 50k AUD in total + ongoing additions.
Now I'm trying to decide whether to find a managed fund, or use Vanguard ETFs. With a new trading account I can keep at least the initial move free of transaction charges, but ongoing additions would cost me the standard fee. I may want to move half of those funds into a mortgage deposit in a year. (maybe?)
Some things I already know of:
- I don't mind trading in full shares
- I can deal with the occasional distribution myself
Things I'd like to learn:
- The volume on ETFs I'm looking at seems very low compared to popular stocks - for example, should I be worried about liquidity of VAP if I want a quick exit?
- Exploring a few higher rated managed funds traded from Australia, I found the high rated ones (by Morningstar) are high risk only - am I just looking in the wrong places? Or is the only choice there to combine multiple higher risk ones?
- If I'm going for an international shares ETF, choosing something like VGAD (hedged into AUD) seems like an obvious choice if I don't pretend to know what's going to happen to the currency rates. Is there any reason why I may consider VTS/VEU instead?
- And finally, does investing into VAP+VAS+VGAD (local+intl mix, hedged into local currency, ratio not defined yet) have any obvious issues?